Cross and isolated margin: which collateral supports a position?

Track the equity that can absorb a loss

Imagine a shared account has 2,000 equity supporting two positions. A 700 loss on one reduces the same equity available to support the other, even if the second position’s price is unchanged.

If instead two properly segregated accounts each have 1,000, a loss in one is evaluated within its own boundary under the implementation’s rules. The illustration does not assume every interface offers automatic account segregation.

Identify what isolated actually means

Isolation can describe a market, a subaccount or a position setting. Check where collateral resides, whether transfers are automatic and which insurance fund applies. A label alone does not establish that every risk or asset in the broader platform is separate.

Read portfolio effects before a displayed price

Cross-margin liquidation depends on the total account and requirements from other positions. A displayed estimate can change without a new trade in the position being inspected. Funding payments and transfers also alter the supporting equity, so a remembered liquidation price is not permanent.